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Home My WebLink About05-21-09 TC MinMINUTES OF THE TOWN OF WESTLAKE, TEXAS TOWN COUNCIL & TEXAS STUDENT HOUSING AUTHORITY BOARD OF DIRECTORS JOINT WORKSHOP May 21, 2009 PRESENT: Mayor Laura Wheat and Council Members Tim Brittan, Larry Corson, Carol Langdon, Rick Rennhack, and Rebecca Rollins, TSHA Chairman Jim Carter and Directors Jac Irvine, George Ledak (arrived at 6:01 p.m.), Jill McKean, and Chuck Schultz. ABSENT: Council Member Brittan and TSHA Director Melanie Lekkos. OTHERS PRESENT: Town Manager Thomas Brymer, Town Secretary Kim Sutter. TSHA Executive Director Pete Ehrenberg, General Counsel Scott Bradley, and Mr. Allen Moon. 1 . CALL TO ORDER. A. Town Council Mayor Wheat called the workshop to order at 5:51 p.m. B. Texas Student Housing Authority Chairman Carter called the workshop to order at 5:51 p.m. 2. HEAR AND DISCUSS OVERVIEW OF TEXAS STUDENT HOUSING AUTHORITY SCHOLARSHIP PROGRAM. Executive Director Ehrenberg addressed the Council and the Board regarding the item. Mr. Ehrenberg reviewed the original goal of the scholarship program and how the program has evolved to today's statewide scholarship offerings Discussion ensued regarding the goals and expectations of the program from the onset and as it exists today, and the TSHA property finances. Town of Westlake Town Council & TSHA Board of Directors Joint Workshop Minutes May 21, 2009 Page 2 of 4 3. DISCUSS AND REVIEW CURRENT STATUS OF TEXAS STUDENT HOUSING AUTHORITY SCHOLARSHIP PROGRAM AND FINANCIAL OUTLOOK REPORT PREPARED BY THE EXECUTIVE DIRECTOR. Executive Director Ehrenberg reviewed the financial outlook for each of the properties: Cambridge o Project 100% occupancy for 2009/10 school year o Rental rates increased o Tax exempt status for 2009 has been denied by Brazos County • Protest has been filed on both property and personal property valuations o Repair and Replacment and Debt Service Reserves Funds are fully funded Discussion ensued regarding the Brazos County tax- exempt denial and the impact to the program, and the current status of the bonds. Ballpark at Austin o Project 97% occupancy for 2009/10 school year o Rental rates increased slightly o 2009/10 net cash flow is expected to remain unchanged o MBIA has retained Cushman & Wakefield to conduct an appraisal review with the possiblility of selling the property if the property meets MBIA criteria • Analysis by Asset Plus indicates the market value is $16.2 o Repair and Replacment fund is depleted o Debt Service Reserve balance is $1.68 million Executive Director Ehrenberg advised that he has met with MBIA, the insurer of the senior bonds at the Ballpark, regarding the possiblity of selling the property. The property appraisal came in at $19.5 to $20.5 million. Town Lake at Austin o Project 97% occupancy for 2009/10 school year o 2009/10 net cash flow is projected to decrease by $16K o MMA has approached to TSHA indicating a willingness to suspend the interest payments on A2 bonds ($33K month) if TSHA will forego Asset Management Fee of $28K/year • A2 Interest payment suspension will trigger an Event of Default • Will give MMA greater input as to the direction of the property, including possible foreclosure action o Repair and Replacement fund balance is $378K o Debt Service Reserve balance is $400K • Currently using $45 to $50K monthly Town of Westlake Town Council & TSHA Board of Directors Joint Workshop Minutes May 21, 2009 Page 3 of 4 Discussion ensued regarding the impact of foregoing the asset management fee of $28K year. Chair Carter stated that he supports a more proactive approach in dealing with MMA concerning the Town Lake property. With no objections, Mayor Wheat stated that she would meet with the Town Manager to discuss possible options for moving forward with regard to the MMA's proposal. Director Irvine stated that he would like to make sure that TSHA does not lose site of the original goal of offering scholarships and obtaining enough revenue to cover the administration costs. Chairman Carter suggested a fmancial analysis be performed on the San Marcos property to determine how valuable the property is to the owner. Mayor Wheat suggested that a committee be formed consisting of two (2) members of the Council, two (2) members of the TSHA Board and a couple of members from the community to discuss possible alternative options with regard to financing of the projects. Discussion ensued regarding the flow of funds related to the Authority. Although not discussed, the following information was presented to the Council and the Board regarding The Ridge at Denton O Project 81% occupancy for 2009/10 school year O 2009/10 net cash flow is projected to be $537K less than FY 2008/09 O Repair and Replacement funds is depleted O Debt Service Reserve fund balance is $2.3 million 4. DISCUSS AND REVIEW REQUEST BY MUNIMAE FINANCIAL TO FOREGO ASSET MANAGEMENT FEES FOR THE TOWN LAKE PROPERTY. See item #3 with regard to the Town Lake property. 5. CONSIDER AND TAKE ACTION REGARDING REQUEST BY MUNIMAE FINANCIAL TO FOREGO ASSET MANAGEMENT FEES FOR THE TOWN LAKE PROPERTY. A. Texas Student Housing Authority. MOTION: Director Irvine made a motion to table consideration of the item. Director Ledak seconded the motion. The motion carried by a vote of 5 -0 Town of Westlake Town Council & TSHA Board of Directors Joint Workshop Minutes May 21, 2009 6. ADJOURNMENT. ATTES A. Town Council There being no further business, Mayor Wheat adjourned the workshop at 8:24 p.m. following discussion of item #3. B. Texas Student Housing Authority There being no further business, Chair Carter adjourned the workshop at 8:27 p.m. APPROVED BY THE TOWN COUNCIL ON JUNE 8, 2009. 'tter, T' C, Town Secretary Laura Wheat, Mayor Page 4 of 4